Discover what a contract expiration date is and how you can track them more effectively in this guide.
What is a contract expiration date?
A contract expiration date marks the end of a contract’s duration. It is the final day that a contract is in effect. Once the contract expiration date has passed, the contract is no longer effective and the contractual obligations end.
Contract expiration dates are used in with fixed-term contracts where the legal relationship ends on a specific date. The expiration date makes it clear to all parties when their responsibilities and involvement in the contract draw to a close.
Where to find a contract expiration date
Contract expiration dates are usually found at the beginning of the contract, or in the section labellled ‘term and termination’. This is where the contract’s commencement date and expiration date is usually outlined.
Not all contracts will have an expiration date, though. Some contracts, like employment contracts, will continue indefinitely. In this instance, the contract only ends when an employment termination agreement comes into place.
It’s also possible that a contract will be discharged through performance, rather than having a contract expiration date. For example, if you enter into an agreement with a freelancer for a particular project, the contract will end when the contract has been performed, not when a certain date passes.
What happens when a contract expires?
When a contract expires, the terms within it are no longer enforceable and the contract becomes void. This means that the parties are discharged from their obligations under the contract as of that date.
Part of this contract expiration process involves offboarding the parties and bringing the relationship to a close. What this looks like will vary depending on the type of contract at hand.
If a lease agreement is expiring, the resident or business occupying the property will need to move their belongings out of the property, for example. Preparing for the contract expiration deadline is crucial for maintaining positive relationships and protecting the assets involved in the contract.
Missing important contract deadlines?
What happens if you aren’t able to track and stay on top of your expiring contracts? Well, there are a few risks associated with poorly tracked contract deadlines.
One risk is that your access to a certain service is cut unexpectedly, causing bottlenecks and blockers for your business. This is a common risk when it comes to SaaS contracts, for example. If you haven’t extended your contract or got another solution in place, you could be left without the tools you need to operate.
If you’re a vendor, the risk is that you continue delivering your service to another business without receiving payment for it. Again, this is something that can easily be prevented by having visibility into your contract expiration dates.
There are also serious compliance issues associated with expired contracts. For example, you might be expected to perform certain obligations before the contract expires, like deleting confidential information, or handing certain assets or access over.
Fortunately, there's a way to make sure you never miss a contract expiration date again. You can track them, along with all other contract deadlines, with Juro's automated contract reminders.
Track contract expiration dates automatically in Juro
Juro's automated contract reminders can be set for key dates in your contracts, allowing you to monitor and react to upcoming deadlines ahead of time.
With Juro, you can keep key stakeholders in the loop about these deadlines with no manual work required - perfect for lean teams with lots of contracts to manage.
I can set reminders for contracts about to be terminated, and follow up to ensure those contracts are renewed before their expiration. Okechukwu Eke, Head of Legal, Moniepoint
To find out more about Juro's contract management functionality, fill in the form below to book your personalized demo.